Product development
The B(L)oom Towns
Published
12 years agoon
By
adminCement companies need to focus more on Tier-II and Tier-III cities in India where the growth potential is highest, says Prakash PatilIndia’s growth story is poised to move into a new orbit with the emergence of new growth centres in the coming decades. These growth centres are the tier-I and tier-II cities dotted across the length and breadth of the country.These cities have witnessed strong pick-up in economic activities – be it industrial, service-oriented or incentive-based policies of the respective state governments to attract investments. The emergence of industrial hubs and services industry have created strong demand for residential, commercial and retail space in these cities. As a result, construction activity has increased due to which the demand for cement has seen impressive growth.The future growth centresSo which cities in India hold the potential to grow exponentially? In the north, cities such as Mohali, Chandigarh, Jaipur, Jodhpur, Ludhiana, Bhiwadi, Baddi, Pantnagar, Rudrapur, Indore, Bhopal, Lucknow, Kanpur, among others, are emerging as future growth centres, while in the west Ahmedabad, Surat, Vadodara, Pune, Nashik, Nagpur are fast emerging as metropolises in their own right. Coimbatore, Kochi, Visakhapatnam, Tiruvananthapuram, Vijaywada, Mysore, among others, are hotspots of the future. In the east, Jamshedpur, Ranchi, Patna, Bhubaneshwar are the cities to watch out for.A research report released in June 2012 by McKinsey Global Institute, observes: "There are 28 Indian middleweight cities in the group (of 440 emerging cities). The best known of them is Bangalore, home to more than eight million inhabitants and the centre of India’s information and technology industry. But the emerging 440 also includes less well-known cities such as Pune, a city in the state of Maharashtra with a strong automotive and pharmaceutical industry, and Kochi, a rapidly growing port city in the southern state of Kerala."Growth triggersEvery city has its own trigger for growth. Just as in the case of Bangalore – which from a sleepy town for the pensioners in the 1980s metamorphosed into a global city and earned the epithet of Silicon Valley of India – the trigger was the IT and ITeS sector, these future cities have their own triggers to drive growth. Baddi in Himachal Pradesh, for example, has emerged as a manufacturing hub for all kinds of fast moving consumer goods, including toothpastes, soaps, biscuits, cosmetics, etc. Pune has had double triggers, first as a manufacturing hub for automobile and pharmaceutical industry and now as an IT and ITeS hub. Likewise, the trigger for Mysore’s growth have been educational institutions and IT industry.Of course, there are other growth triggers too. The increasing economic activity in these cities has had a cascading and positive impact on the income levels and consumption demand in these cities. The increase in employment levels of the inhabitants of these cities and the surrounding areas created demand not only for consumer goods but also for residential and commercial properties in these cities. Hence, local developers with innate knowledge of the preferences of the local populace stepped in to meet the growing demand for residential houses and commercial properties. The demand from end-users created a booming property market, which attracted the investors who stepped in to cash in on the boom. As a result, the demand for cement has grown manifold in these cities and is tipped to grow exponentially going forward. This augurs well for the cement companies as a booming property market leads to increasing demand for cement."Riding on the economic boom, small towns of India are rapidly turning into mini-metros. Many malls are being developed in these places and big brands are opening up stores there to cater to the rising aspirations of customers living in tier II and III cities," says Sanjay Prabhu, Mall Mechanic and Chief Managing Officer, Beyond Squarefeet Advisory at a seminar held in Mumbai.Also, with IT and ITeS sectors registering fast growth, their need for office space has led to the real estate prices in tier I cities sky-rocketing and directly affecting margins of these companies. Hence, these companies as well as other industries have been moving to tier-II and tier-III cities. As factories and offices moved to these cities, so did the developers.The factors that led to the growth of the real estate sector in tier I cities are now leading the growth in tier-II and tier-III cities as well. Increase in job opportunities followed by increase in disposable incomes and educationally and vocationally qualified skilled labour, availability of banking and financial services, etc. have positively impacted the demand for real estate in these cities. Residents of these cities buy residential or commercial property for self-use or for renting it out to earn extra income.While the demand for real estate in tier-II cities such as Pune, Hyderabad and Ahmedabad is quite high but other cities such as Surat, Nagpur, Jaipur, Kochi, etc. are not far behind. Proximity of metro cities such as Mumbai, Delhi, Bangalore, etc. provides the demand push to other satellite cities as well. Pune is the best example of the rub-off effect of Mumbai. The state governments are also playing an important role in promoting tier-II and tier-III cities in the state as investment destinations.The growth of these cities augurs well for cement companies for the obvious reason that such growth will see infrastructure spending in these cities taking a quantum jump. The infrastructure has to keep pace with the growth in the industrial and commercial activities, so the government and local bodies will have to take increase their infrastructure spending manifold to make sure that the growth is not hampered due to lack of infrastructure.Speaking about the state of real estate in Pune, Lalit Kumar Jain, Chairman and Managing Director, Kumar Urban Developments and President CREDAI– National, says "Property prices in Pune have increased significantly as compared to the prices in the previous decade. We do not foresee a change in this trend. Demand for properties, both residential and commercial, is rising by the day. The infrastructure in the city is also improving by the day. Good infrastructure plays a major role in raising the property prices in a city. However, the government’s efforts to make home loans more affordable and easily obtainable will go a long way in helping people cope up with rising property prices. Also, developers are doing their bit to make homes affordable. They offer various schemes and discounts to entice people to buy homes….Significant chunk of the population in Pune is middle-class. With increasing disposable incomes, the middle class segment is always on the lookout for good investment options, and in today’s world, there is no better investment avenue than the real estate sector."In the case of Bhubaneshwar, it has the advantage of being a state capital. That apart, sectors such as IT and education have picked up pace and are likely to prove growth triggers for the city going forward. "Bhubaneswar has its own charming character and advantage. Besides the IT growth, industrial growth, educational hub, etc. are adding to the pace. The future prospect of real estate in Bhubaneswar looks to be good," says Tapan Kumar Mohanty, managing director, Z Estates.However, Mohanty says that presently Bhubaneshwar’s growth has slowed down due to various factors. "Though the realty business has slowed down a bit from the previous years, but still the overall real estate market is okay. The growth would be around 20 per cent…. Property prices will have an upward movement, but not at the kind of jump it used to have in the last few years. Henceforth the price movement might have a slow growth…. The budget homes and mid-segment are always more in demand, though our company focuses more on high-end and mid-segment," says Mohanty.Another trigger for growth of tier-II and tier-III cities is foreign direct investment. Pune has witnessed real estate boom on account of FDI. "The real estate sector in Pune has gained momentum ever since the government encouraged Foreign Direct Investment in the infrastructure sector apart from the real estate segment. Foreign investors invest in the city expecting high returns on their investment. Investments by multinational companies have contributed immensely to the growth of the property market in Pune. Increase in disposable income is another factor that has contributed to the growth in the property market in Pune. Also, favourable government policies play an important role in the growth of real estate sector in the city," avers Jain.The advantagesTier-II and tier-III cities offer several advantages in terms of real estate development. First and foremost, land in these cities is available aplenty and at comparatively cheaper price than metros such as Mumbai, Delhi, Bangalore, etc. This makes construction of affordable housing for the blue and white-collar workers a feasible and commercially viable proposition. No wonder, not only the local developers, even larger real estate players from beyond the region’s borders may be attracted to these cities in order to leverage the potential of tier-II / tier-III cities that have sufficient market drivers or are witnessing considerable investor activity to leverage the potential from beyond a region’s borders. Also, unlike tier-I cities, the tier-II and tier-III cities remain relatively immune from the adverse impact of globalization. Hence, although the slowdown has gripped the realty sector’s growth in tier-I cities, the focus of the realty companies has now shifted to tier-II and tier-III cities.Since the demand for real estate is mostly from the actual users and only marginal demand is speculative in nature, there is not much of fluctuation in property prices which remain stable for considerable time. This is good for the property buyers as well as the developers, who therefore remain relatively immune from the risks of highly volatile market fluctuations.The future is rosyThe fact remains that many of the metro cities are on the verge of saturation due to which the tier-II and tier-III cities are next in line to become the future growth centres. The sheer pressure of population growth will see the juggernaut of growth moving towards these cities. Hence, these cities are slowly moving up the ladder to become mini-metros or major metros in times to come. "We expect the real estate business to be booming in Pune in the near future. Once the economy recovers, which it will shortly, more and more people will start investing in real estate. Also, demand for real estate in Pune will be high due to high income levels of the people and the city’s proximity to Mumbai. So, the future does look rosy," says Jain. When the tier-II and tier-III cities start booming, the cement industry will benefit the most. Asked about the future of the markets for the cement industry in Tier-II and Tier-III cities, Maurizio Caneppele, Managing Director, Zuari Cement, said "The Tier-I/metro cities are still top demand generators; however, the infrastructure push along with local spend at the Tier II and Tier-III cities makes these markets more and more lucrative for future consumption and growth." So, cement companies should take a cue and focus more on these cities to fast-pace their growth."Significant chunk of the population in Pune is middle-class. With increasing disposable incomes, the middle class segment is always on the lookout for good investment options, and in today’s world, there is no better investment avenue than the real estate sector.""Future prospects of Bhubaneshwar look good"IT sector, industrial growth and educational hub are adding to the pace of Bhubaneshwar’s growth, says Tapan Kumar Mohanty, managing director, Z Estates, BhubaneshwarHow is the realty business doing in your city? How much has your business picked up this fiscal (FY2012-13) over the last fiscal (FY2011-12)?
Though the realty business has slowed down a bit from the previous years, but still the overall real estate market is okay. The growth would be around 20 per cent….Property prices will have an upward movement, but not at the kind of jump it used to have in the last few years. Henceforth the price movement might have a slow growth….The budget homes and mid-segment are always more in demand, though our company focuses more on high-end and mid-segment.What are the likely triggers of growth for the real estate sector in your city and what are the prospects of real estate business in your city in future?
Likely triggers are many. First of all, Bhubaneswar being the state capital has its own charming character and advantage. Besides IT and industrial growth, educational hub, etc. are adding to the pace. The future prospect of real estate in Bhubaneswar looks to be good.What kind of cement do you use the most? Is the cement easily available at reasonable price in the market?
Though the brands we use vary frequently depending on various reasons, few of these brands are Ambuja, Ultratech, ACC, Rassi Gold, Zuari, Ramco, Lafarge, Konark, JP, etc.Reasonable price has no definition. In off-season, yes, we can say the prices are good. But during season there is no logic, no justification, no reasonableness for the kind of price rise the companies indulge in.Why do you prefer to use particular cement brands in your projects?The reason why we use the brands is dependent on various reasons: may be availability, may be the best price we get at the time of lifting the material, may be the type of cement we need for particular job and its availability with some limited manufacturers, etc.What kind of problems/issues do you face in procurement of cement in your city? What do you expect from the cement companies/dealers to resolve these problems/issues?
Frankly speaking, none of the cement companies have any long term marketing policy based on certain vision, principles, ethics and/or relation building, rather all their marketing strategies are ad-hoc, opportunistic, cut-throat and unprincipled. This is one area where the reputed and well-established companies should break the traditional way of marketing and develop more organized, long-term based, brand loyalty, relationship building kind of marketing etc.
Advertising or branding is never about driving sales. It’s about creating brand awareness and recall. It’s about conveying the core values of your brand to your consumers. In this context, why is branding important for cement companies? As far as the customers are concerned cement is simply cement. It is precisely for this reason that branding, marketing and advertising of cement becomes crucial. Since the customer is unable to differentiate between the shades of grey, the onus of creating this awareness is carried by the brands. That explains the heavy marketing budgets, celebrity-centric commercials, emotion-invoking taglines and campaigns enunciating the many benefits of their offerings.
Marketing strategies of cement companies have undergone gradual transformation owing to the change in consumer behaviour. While TV commercials are high on humour and emotions to establish a fast connect with the customer, social media campaigns are focussed more on capturing the consumer’s attention in an over-crowded virtual world. Branding for cement companies has become a holistic growth strategy with quantifiable results. This has made brands opt for a mix package of traditional and new-age tools, such as social media. However, the hero of every marketing communication is the message, which encapsulates the unique selling points of the product. That after all is crux of the matter here.
While cement companies are effectively using marketing tools to reach out to the consumers, they need to strengthen the four Cs of the branding process – Consumer, Cost, Communication and Convenience. Putting up the right message, at the right time and at the right place for the right kind of customer demographic is of utmost importance in the long run. It is precisely for this reason that regional players are likely to have an upper hand as they rely on local language and cultural references to drive home the point. But modern marketing and branding domain is exponentially growing and it would be an interesting exercise to tabulate and analyse its impact on branding for cement.
Concrete
Indian cement industry is well known for its energy and natural resource efficiency
Published
2 years agoon
November 18, 2022By
adminDr Hitesh Sukhwal, Deputy General Manager – Environment, Udaipur Cement Works Limited (UCWL) takes us through the multifaceted efforts that the company has undertaken to keep emissions in check with the use of alternative sources of energy and carbon capture technology.
Tell us about the policies of your organisation for the betterment of the environment.
Caring for people is one of the core values of our JK Lakshmi Cement Limited. We strongly believe that we all together can make a difference. In all our units, we have taken measures to reduce carbon footprint, emissions and minimise the use of natural resources. Climate change and sustainable development are major global concerns. As a responsible corporate, we are committed with and doing consistent effort small or big to preserve and enrich the environment in and around our area of operations.
As far as environmental policies are concerned, we are committed to comply with all applicable laws, standards and regulations of regulatory bodies pertaining to the environment. We are consistently making efforts to integrate the environmental concerns into the mainstream of the operations. We are giving thrust upon natural resource conservation like limestone, gypsum, water and energy. We are utilising different kinds of alternative fuels and raw materials. Awareness among the employees and local people on environmental concerns is an integral part of our company. We are adopting best environmental practices aligned with sustainable development goals.
Udaipur Cement Works Limited is a subsidiary of the JK Lakshmi Cement Limited. Since its inception, the company is committed towards boosting sustainability through adopting the latest art of technology designs, resource efficient equipment and various in-house innovations. We are giving thrust upon renewable and clean energy sources for our cement manufacturing. Solar Power and Waste Heat Recovery based power are our key ingredients for total power mix.
What impact does cement production have on the environment? Elaborate the major areas affected.
The major environmental concern areas during cement production are air emissions through point and nonpoint sources due to plant operation and emissions from mining operation, from material transport, carbon emissions through process, transit, noise pollution, vibration during mining, natural resource depletion, loss of biodiversity and change in landscape.
India is the second largest cement producer in the world. The Indian cement industry is well known for its energy and natural resource efficiency worldwide. The Indian cement industry is a frontrunner for implementing significant technology measures to ensure a greener future.
The cement industry is an energy intensive and significant contributor to climate change. Cement production contributes greenhouse gases directly and indirectly into the atmosphere through calcination and use of fossil fuels in an energy form. The industry believes in a circular economy by utilising alternative fuels for making cement. Cement companies are focusing on major areas of energy efficiency by adoption of technology measures, clinker substitution by alternative raw material for cement making, alternative fuels and green and clean energy resources. These all efforts are being done towards environment protection and sustainable future.
Nowadays, almost all cement units have a dry manufacturing process for cement production, only a few exceptions where wet manufacturing processes are in operation. In the dry manufacturing process, water is used only for the purpose of machinery cooling, which is recirculated in a closed loop, thus, no polluted water is generated during the dry manufacturing process.
We should also accept the fact that modern life is impossible without cement. However, through state-of-the-art technology and innovations, it is possible to mitigate all kinds of pollution without harm to the environment and human beings.
Tell us about the impact blended cement creates on the environment and emission rate.
Our country started cement production in 1914. However, it was introduced in the year 1904 at a small scale, earlier. Initially, the manufacturing of cement was only for Ordinary Portland Cement (OPC). In the 1980s, the production of blended cement was introduced by replacing fly ash and blast furnace slag. The production of blended cement increased in the growth period and crossed the 50 per cent in the year 2004.
The manufacturing of blended cement results in substantial savings in the thermal and electrical energy consumption as well as saving of natural resources. The overall consumption of raw materials, fossil fuel such as coal, efficient burning and state-of-the-art technology in cement plants have resulted in the gradual reduction of emission of carbon dioxide (CO2). Later, the production of blended cement was increased in manifolds.
If we think about the growth of blended cement in the past few decades, we can understand how much quantity of , (fly ash and slag) consumed and saved natural resources like limestone and fossil fuel, which were anyhow disposed of and harmed the environment. This is the reason it is called green cement. Reduction in the clinker to cement ratio has the second highest emission reduction potential i.e., 37 per cent. The low carbon roadmap for cement industries can be achieved from blended cement. Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Composite Cement are already approved by the National Agency BIS.
As far as kilogram CO2 per ton of cement emission concerns, Portland Slag Cement (PSC) has a larger potential, other than PPC, Composite Cement etc. for carbon emission reduction. BIS approved 60 per cent slag and 35 per cent clinker in composition of PSC. Thus, clinker per centage is quite less in PSC composition compared to other blended cement. The manufacturing of blended cement directly reduces thermal and process emissions, which contribute high in overall emissions from the cement industry, and this cannot be addressed through adoption of energy efficiency measures.
In the coming times, the cement industry must relook for other blended cement options to achieve a low carbon emissions road map. In near future, availability of fly ash and slag in terms of quality and quantity will be reduced due to various government schemes for low carbon initiatives viz. enhance renewable energy sources, waste to energy plants etc.
Further, it is required to increase awareness among consumers, like individual home builders or large infrastructure projects, to adopt greener alternatives viz. PPC and PSC for more sustainable
resource utilisation.
What are the decarbonising efforts taken by your organisation?
India is the world’s second largest cement producer. Rapid growth of big infrastructure, low-cost housing (Pradhan Mantri Awas Yojna), smart cities project and urbanisation will create cement demand in future. Being an energy intensive industry, we are also focusing upon alternative and renewable energy sources for long-term sustainable business growth for cement production.
Presently, our focus is to improve efficiency of zero carbon electricity generation technology such as waste heat recovery power through process optimisation and by adopting technological innovations in WHR power systems. We are also increasing our capacity for WHR based power and solar power in the near future. Right now, we are sourcing about 50 per cent of our power requirement from clean and renewable energy sources i.e., zero carbon electricity generation technology. Usage of alternative fuel during co-processing in the cement manufacturing process is a viable and sustainable option. In our unit, we are utilising alternative raw material and fuel for reducing carbon emissions. We are also looking forward to green logistics for our product transport in nearby areas.
By reducing clinker – cement ratio, increasing production of PPC and PSC cement, utilisation of alternative raw materials like synthetic gypsum/chemical gypsum, Jarosite generated from other process industries, we can reduce carbon emissions from cement manufacturing process. Further, we are looking forward to generating onsite fossil free electricity generation facilities by increasing the capacity of WHR based power and ground mounted solar energy plants.
We can say energy is the prime requirement of the cement industry and renewable energy is one of the major sources, which provides an opportunity to make a clean, safe and infinite source of power which is affordable for the cement industry.
What are the current programmes run by your organisation for re-building the environment and reducing pollution?
We are working in different ways for environmental aspects. As I said, we strongly believe that we all together can make a difference. We focus on every environmental aspect directly / indirectly related to our operation and surroundings.
If we talk about air pollution in operation, every section of the operational unit is well equipped with state-of-the-art technology-based air pollution control equipment (BagHouse and ESP) to mitigate the dust pollution beyond the compliance standard. We use high class standard PTFE glass fibre filter bags in our bag houses. UCWL has installed the DeNOx system (SNCR) for abatement of NOx pollution within norms. The company has installed a 6 MW capacity Waste Heat Recovery based power plant that utilises waste heat of kiln i.e., green and clean energy source. Also, installed a 14.6 MW capacity solar power system in the form of a renewable energy source.
All material transfer points are equipped with a dust extraction system. Material is stored under a covered shed to avoid secondary fugitive dust emission sources. Finished product is stored in silos. Water spraying system are mounted with material handling point. Road vacuum sweeping machine deployed for housekeeping of paved area.
In mining, have deployed wet drill machine for drilling bore holes. Controlled blasting is carried out with optimum charge using Air Decking Technique with wooden spacers and non-electric detonator (NONEL) for control of noise, fly rock, vibration, and dust emission. No secondary blasting is being done. The boulders are broken by hydraulic rock breaker. Moreover, instead of road transport, we installed Overland Belt Conveying system for crushed limestone transport from mine lease area to cement plant. Thus omit an insignificant amount of greenhouse gas emissions due to material transport, which is otherwise emitted from combustion of fossil fuel in the transport system. All point emission sources (stacks) are well equipped with online continuous emission monitoring system (OCEMS) for measuring parameters like PM, SO2 and NOx for 24×7. OCEMS data are interfaced with SPCB and CPCB servers.
The company has done considerable work upon water conservation and certified at 2.76 times water positive. We installed a digital water flow metre for each abstraction point and digital ground water level recorder for measuring ground water level 24×7. All digital metres and level recorders are monitored by an in-house designed IoT based dashboard. Through this live dashboard, we can assess the impact of rainwater harvesting (RWH) and ground water monitoring.
All points of domestic sewage are well connected with Sewage Treatment Plant (STP) and treated water is being utilised in industrial cooling purposes, green belt development and in dust suppression. Effluent Treatment Plant (ETP) installed for mine’s workshop. Treated water is reused in washing activity. The unit maintains Zero Liquid Discharge (ZLD).
Our unit has done extensive plantations of native and pollution tolerant species in industrial premises and mine lease areas. Moreover, we are not confined to our industrial boundary for plantation. We organised seedling distribution camps in our surrounding areas. We involve our stakeholders, too, for our plantation drive. UCWL has also extended its services under Corporate Social Responsibility for betterment of the environment in its surrounding. We conduct awareness programs for employees and stakeholders. We have banned Single Use Plastic (SUP) in our premises. In our industrial township, we have implemented a solid waste management system for our all households, guest house and bachelor hostel. A complete process of segregated waste (dry and wet) door to door collection systems is well established.
Tell us about the efforts taken by your organisation to better the environment in and around the manufacturing unit.
UCWL has invested capital in various environmental management and protection projects like installed DeNOx (SNCR) system, strengthening green belt development in and out of industrial premises, installed high class pollution control equipment, ground-mounted solar power plant etc.
The company has taken up various energy conservation projects like, installed VFD to reduce power consumption, improve efficiency of WHR power generation by installing additional economiser tubes and AI-based process optimisation systems. Further, we are going to increase WHR power generation capacity under our upcoming expansion project. UCWL promotes rainwater harvesting for augmentation of the ground water resource. Various scientifically based WHR structures are installed in plant premises and mine lease areas. About 80 per cent of present water requirement is being fulfilled by harvested rainwater sourced from Mine’s Pit. We are also looking forward towards green transport (CNG/LNG based), which will drastically reduce carbon footprint.
We are proud to say that JK Lakshmi Cement Limited has a strong leadership and vision for developing an eco-conscious and sustainable role model of our cement business. The company was a pioneer among cement industries of India, which had installed the DeNOx (SNCR) system in its cement plant.
Concrete
NTPC selects Carbon Clean and Green Power for carbon capture facility
Published
2 years agoon
October 12, 2022By
adminCarbon Clean and Green Power International Pvt. Ltd has been chosen by NTPC Energy Technology Research Alliance (NETRA) to establish the carbon capture facility at NTPC Vindhyachal. This facility, which will use a modified tertiary amine to absorb CO2 from the power plant’s flue gas, is intended to capture 20 tonnes of CO2) per day. A catalytic hydrogenation method will eventually be used to mix the CO2 with hydrogen to create 10 tonnes of methanol each day. For NTPC, capturing CO2 from coal-fired power plant flue gas and turning it into methanol is a key area that has the potential to open up new business prospects and revenue streams.